There are a lot of resources available for students who are considering going to college, including federal Pell grants, guaranteed student loans, scholarships, and direct financial aid from colleges and universities. All of these resources have one thing in common, to qualify for them a student must first fill out a federal application for student aid, or FAFSA form.
The form is available from any college financial aid office or high school guidance counselor, but it can also be filled out online at fafsa.ed.gov. Online is actually the preferred method for applying for financial aid as it allows more options and faster response times, and avoids the possibility of someone else creating typos when they enter the information.
Once the FAFSA is applied for the results are announced in an award letter that states the expected student or family contribution. This is based upon the income level of the student, and in the case of dependent students, the income level of the parents.
Free Grant Money for College
Federal Pell grants are awarded in varying amounts and can range to over $5,000 per school year. These grants do not have to be repaid, making them the first and best approach to financial aid. If the grant is awarded for more money than the tuition and books cost, the difference is refunded directly to the student to go toward cost of living expenses.
Scholarships are available from schools, organizations, and even employers in varying amounts. Each scholarship has its own eligibility requirements and award amounts, and no two are exactly the same. The financial aid office at the college will have information about a wide range of scholarships that they are familiar with.
Low Interest Students Loans
Student loans are also available to cover costs beyond the grant and scholarship award amounts if needed, but these have to be repaid upon graduation. The interest rate on subsidized student loans is paid for by the federal government, while the interest rate on unsubsidized student loans is paid by the student, although the rate is typically very low.
There are a variety of financial aid search sites online, but not all of them are created equal. Some of the sites charge users a fee for accessing the information or for contact information, while others make money by referring students to sites that charge fees. It is best to avoid any site that wants to charge a fee for financial aid information.
Some of the better free search sites include Fastweb, CollegeAnswer.com, Scholarships.com, and TheOldSchool.org. Don't forget to search for past or present employers, and the employers of the student's parents, as well as organizations such as 4H or the Masonic Lodge that may offer various scholarships or grants.
States Provide Financial Aid to Students
Nearly every state has an agency that is responsible for providing grants and scholarships as well, so it always pays to do a search of the official state website. Some states have a very robust system of awarding aid to students based on financial need, while others are focused more on ability, but there is typically a significant amount of money available in any case.
The important thing is to apply early and do a thorough search for financial aid of all kinds. Most students end up using a mixture of grants, scholarships, and student loans to complete their degrees. The FAFSA must be filled out by July 1 each year for full eligibility, but it can be filled out any time right up to a couple of weeks past the beginning of classes as well.
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